A controversial 40-unit
apartment building proposed for the site where Ward Weaver killed two girls
failed to qualify for state funding.

The developer, Central City
Concern, was one of 29 applicants competing for the $22 million available from
the Oregon Housing and Community Services. Thirteen received funding.

An energetic campaign against
the project that popped up at the last minute had no impact of the state's decision,
said Benjamin Pray, the state agency's communication manager.

The Oregon City project, which was relying on $8 million in state money, was worthy
of consideration but it did not score high enough to qualify for funding, Pray
said. "We didn't have the resources
to fund all the applications we received," Pray said. "We had to make difficult
decisions."

The apartments would have served
people recovering from drug or alcohol
addiction and their families.

"We are walking
away from this specific site, however we're still interested in developing
family housing in the metro area," said Kathy Pape, Central
City Concern spokeswoman.

The site at 2507 S. Beavercreek Road is
notorious.

The last person to live there, Ward
Weaver, was arrested in 2002 for killing Ashley Pond, 12, and Miranda Gaddis,
13. He hid their bodies on the property. Weaver was convicted of the slayings,
and the house was demolished. The land – almost an acre -- has been for sale
for 10 years.

In the weeks before the state's funding
decision, Miriah Gillett, sister of Miranda Gaddis, led a grass-roots effort to oppose the project. Critics said the project would bring attract a criminal element, including sex offenders, to the
neighborhood and dishonor the dead girls.

Central City Concern said
opponents were spreading misinformation about a much-needed housing project. A
tenant would have to complete a treatment program and a period of sobriety to
qualify for residency. Sex offenders would be barred, said Ed Blackburn,
Central City Concern executive director.

There are no low-income units in
Clackamas County dedicated to families dealing with recovery and finding affordable
land for such a project is challenging, Blackburn said.